Have you ever wondered just how important your credit score is to your financial decision making process? When you consider that your score will determine whether you will get that new car or house that you have had your eye on for some time it’s no wonder many people share the same thoughts. The fact is , that even small credit problems can cause you to be turned down for a loan now and a few years later. It is important for you to know what your credit score is, and if it’s not very high then you need to learn how to improve it.
There are a lot of things that can negatively affect your credit: unpaid credit card bills, and even an unpaid traffic fine can give you a negative mark at the credit bureau. A short list of other things that could hold your credit back would be: having a loan go into default, having a loan being sent to collections, filing for bankruptcy, home foreclosure, and maxing out your credit cards.
Ignoring your credit card bills, or not paying your bills at all, is probably the worst thing you can do to your credit score and this is one reason you need credit and collections management tutorials. A late payment is much better than no payment at all. Lenders are looking for people who have a history of paying their financial obligations.
If you’re getting annoying phone calls from third party collectors then this is probably not the right time for applying for credit. When a debt is in the hands of a collection agency, it means that the original lender has given up collecting payment from you and decided to hire someone to do it for them. These days home foreclosure has become a big problem.
Many lenders are sympathetic to having problems of making your mortgage payments or having your home in foreclosure; however, this does not mean that you will have an easy time getting another mortgage loan. Instead of filing for bankruptcy, or going through a home foreclosure, you might try to see a consumer credit counsellor and get these management tutorials to help you.
If your credit is poor, don’t give up. Instead go see your lender and ask them to help you make a plan to improve your credit score. Many people who have a very poor credit rating have been helped to the point of obtaining loans and mortgage much faster than they ever thought possible just by making a credit repair plan with their lender.
Some people who have been turned down have found that their score was